The Big Deal

rInvestors' enthusiasm in anticipation of an interest-rate cut and equanimity after it arrived carried major stock indexes moderately higher, despite gathering evidence of a sharp economic slowdown. U.S. diversified equity funds as a group edged higher by 1.11% in the week ended Thursday, barely trailing the Standard & Poor's 500 Index. Smaller stocks handily beat big names, as January's close left intact the notion that small-caps started the year stronger. Small-cap growth funds gained 2.26% and small-cap value vehicles were right behind at 2.18%. With the dollar weakening on soft economic data and lower rates, gold funds led all groups with a 3.32% advance. Health-care sector funds extended their recent retreat in payback for a strong 2000, sliding 1.27%. Among the largest 25 funds, Washington Mutual Investors led with a gain of 1.95%, followed by Putnam Growth & Income at 1.93%. In the loser's column, Janus Twenty suffered a 2.6% decline.

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